Question

Meera borrowed a sum of Rs. 1000 from Sita for two years. If the rate of interest is 10% compounded annually, find the amount that Meera has to pay back.

Answer 1

Answer:

Amount is Rs 1210

Step-by-step explanation:

Solution

Given details are,

Principal (p) = Rs 1000

Rate (r) = 10 % per annum

Time (t) = 2 years

By using the formula,

A = P (1 + R/100) n

= 1000 (1 + 10/100)²

= 1000 (110/100)²

= Rs 1210

∴ Amount is Rs 1210

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